Huawei posts 39% jump in first-quarter revenues

Shenzhen-headquartered company shipped nearly 59 million smartphones in the first three months of 2019, despite security concerns

epa07520861 (FILE) - A view shows a Huawei logo on a Huawei store in Beijing, China, 12 December 2018 (reissued 22 April 2019). According to media reports on 22 April, Chinese telecommunications company Huawei reportedly earned 179.7 billion Yuan (26 billion US dollar) in revenue in the first quarter of 2019, a 39 percent year-on-year increase, despite political pressure from the US to block Huawei's efforts to build 5G networks due to espionage allegations.  EPA/WU HONG
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Huawei's revenues soared by 39 per cent year-on-year in the first three months of 2019, even amid US pressure and some concerns that its 5G equipment is not totally secure.

In its first-ever quarterly earnings report released on Monday, the Shenzhen-headquartered company said its revenue totalled 179.7 billion yuan (Dh98bn) as the vendor shipped nearly 59 million smartphones in the first quarter.

The world’s largest telecoms equipment maker did not disclose its actual net profit but said profit margin, calculated as net income divided by revenue, or net profits divided by sales, was nearly 8 per cent for the quarter - slightly higher than the first quarter of 2018.

Huawei maintained that its focus on ICT infrastructure and smart devices contributed to its solid performance in the first quarter of 2019.

The unlisted company has released its earnings at a time when it is facing mounting global pressure - led by the US - over accusations its equipment is not secure and can facilitate espionage. Following a campaign by the US, Australia and New Zealand have announced they would not allow Huawei to be involved in building 5G systems in their countries.

However, there are mixed reactions among European countries, many of which are testing Huawei devices against their own security standards.

“2019 will be a year of large-scale deployment of 5G around the world, meaning that Huawei has unprecedented opportunities for growth,” it said.

Last month, the company announced its earnings increased 25 per cent in 2018 over 2017 and revenues grew nearly 20 per cent, crossing the $100bn mark for the first time.

Huawei said it aims to boost income further in 2019 on the back of a widespread roll-out of 5G networks around the world.

The Chinese manufacturer has signed 23 5G contracts in Europe, 10 in the Middle East, six in Asia-Pacific and one in Africa. It has already shipped more than 70,000 5G base stations globally and aims to dispatch another 100,000 by the end of May. Its main rivals Nokia and Ericsson have each secured 16 5G contracts as of the end of March.

“We expect more large-scale deployment of 5G in 2019. It will enable broader connectivity ... that will create huge opportunities,” said Guo Ping, Huawei's rotating chairman, at an earlier media briefing.